CHAPTER 1
BACKGROUND OF THE STUDY

. Introduction

​International Trade is increasingly becoming a fast – paced environment as it has given birth to a new economy through a technological revolution. New technologies are reshaping and impacting international trade, one of these is the Internet. The Internet is becoming a key platform for commerce that is increasingly happening between buyers and sellers located in different countries, thereby driving international trade. Additionally, as the Internet enables cross-border data flows that also underpinning global economic integration and international trade.

​The Internet has revolutionized how individuals and businesses conduct their affairs. Selling and buying through internet or commonly called online trading is the fastest growing method of trading worldwide specifically in the Philippines. Despite the growing significance of the internet for international trade, the governments are restricting the Internet in ways that reduce the ability of businesses, entrepreneurs and individuals to use the Internet as a place for international commerce or online trading. Some of these restrictions used to achieve legitimate goals such as preventing cybercrime or restricting access to morally offensive content.

​This paper discusses the impact of Internet in the Philippines as a means of business communication to international trade, and more specifically Online trading. It explains the cross-border data flows and gives advantages and disadvantages of online trading on international trade, government restrictions and some of international trade rules and norms.

. Statement of the Research Problem
​This research will focus on the impact of the Internet as a means of business communication in the Philippines to international trade arena. This research attempted to answer the following questions:

1. What are the advantages and disadvantages of Internet in the Philippine market? 2. What are the risks or dangers of Online trading?
3. What are the negative and positive impacts of internet on businesses in the Philippines? 4. How does online trading affect offline businesses in the Philippines?
. Statement of the Research Objectives
​This research aimed to information on the impact of Internet as a means of business communication in the Philippines to international trade arena. The researchers attempted to achieve the following:

1. To know what are the advantages and disadvantages of internet in the Philippine market. 2. To know what are the risks or dangers of Online trading.
3. To know the negative and positive impacts of internet on businesses in the Philippines 4. To know how online trading affect offline businesses in the Philippines.

D. SIGNIFICANCE OF THE STUDY:
​There are several studies made in the Impact of Internet in the Philippines as a means of business communication to International Trade Arena. This research will benefit the following:
D.1 – Individuals
Trading online is efficient for an individual working from home can now advertise produce their own website and sell their products worldwide. They can find clients worldwide by the use of internet as their communication. And using not much of their time they can also do household chores while advertising their products. D.2 – Businesses

​Trading online making possible to the businesses to reach other countries while decreasing the cost of retailing methods. Al...

-2006 -23 -95 -99 /j.1467-9930.2004.00185.x /j.1468-5957.2011.02258.x /j.1540-6261.2011.01668.x /j.1749-8198.2008.00171.x /j.2041-6156.2009.tb00014.x /jait.2012.1001 /n2xd-tf8y-jt4l-l6v0 1 10.1111 10.1506 10.7726 1209 1237 1369 1406 1922 1942 1992 1996 1999 2 20 2000 2001 2003 2004 2006 2007 2008 2009 2011 2012 237 26 275 3 38 4 411 413 437 439 5 540 6 66 68 7 8 a.s abil absolut accept access account achiev acknowledg action activ actor addit adopt advanc advantag advertis affair affect ahm aim al allow alongsid also although ambit among amount analysi and/or announc anonym answer appear appli applic arena argu around articl artisan ask aspect assess associ assur asymmetr attempt attent attract auction augment avail averag avoid b b2c background base basi becom behav behavior belief believ benefit besid better bibliographi bid bid-ask birth bivari board book border bottom brand build busi buy buyer c call canada cannot capac care carri case categor central chang channel chapter chen chen-ju choe choos chore chung ci ci-rong circumv citizen claim clear client coeffici combin commerc commerci commit common communic compar compass complex comprehens concentr conceptu concern conclud condon conduct confirm conjectur consid consist consum contemporan contemporari content context continu contrarian contribut cooper cost countri cours creativ credit credit-weight crime cross cross-bord cross-sect cumul cunningham custom cybercrim cycl cyclic d d.1 d.2 d.3 d.4 daili danger data date davi day day-trad deal debat decentr decis decreas deliveri demograph demonstr despit detail develop deviat devic didn differ differenti digit disadvantag discuss dishonest dissip dissolut divers diversifi document doi done dong drive due dump e e-commerc e-vendor earn ebay ecommerc econom economi ect effect effici electron electronic-trad emerg empir enabl enact encourag end enforc engag enhanc enjoy enorm entrepreneur environ equal equiti erc error estim et et.al even evid examin exchang exhaust exhibit expect expectation-confirm expert explain express extend extent f fact factor fair fall fast fastest featur feedback filipino final financ financi find firm fit flow focus follow foreign foster foucault foulcault found fourteen framework french fundament futur gain gender geographi giant give given global goal good googl govern government gradual great greater group grow growth guid h happen head heavili help herd high higher home honest host hour household howev huang hwaunivers hypothesi identifi ii iii imbal impact import improv inasmuch incid includ increas index indic individu influenc inform initi innov insight institut integr intent interact intern internet interpret intraday introduct invest investig investor involv isol issu issuer item j j.m job journal ju k keep key kho know korea later law le lead led legitim less li life limit lin line liquid liquidity.asia literatur live livelihood local locat long longev lower lower-pr m made magnitud main make malici mani manipul mare market may mean meaning measur messag method methodolog might minut minute-by-minut model money moral most msn much multi multi-channel naiv nation natur need negat negoti network new news next nois non non-government norm number object ofbusi offens offlin old on-lin one ongo onlin opportun order organ organis other outcom overal overlap oversimplif overview pace pacif paint paper part particip partnership past pattern pay peak peopl perceiv percept period person phase philippin photograph place plan platform point polici polit popular portfolio posit possibl post potenti poverti precis predict predictor prefer prevent price primari prior problem produc product proport provid publish pump purpos put quarter question r rais rang reach reaction reason rebecca rebuild recogn reduc reduct refer reform regard regul regulatori relat relev reli remain repeat reput requir research reshap respect respond respons restrict result retail return reveal revers review revolut revolution risk rong roof rule sabherw sampl sarkar schneibl scope search section sector secur see seek seen sell seller sentiment servic set sever shan shan-yan shift shock short short-term show signific simpli size skill small small-siz social societi sourc special specialist specif specul spend spread sraer standard start state statement steven still stock strategi stuart student studi subject success suggest suit suitabl supplier support survey sustain system tabl tam technolog temporarili temptat tend term test theoret theori therebi therefor therein thesmar thid thing though three time tool tpb tra trade trader trading-rel transact transat trend trust trustworthi two two-day uk underpin understand unrel usabl use user valid var variabl varieti various vendor via viii volatil volum way weak web websit weight well whether whole widespread will within without women work world worldwid y yan year yet zhang